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Culture, Tourism, Europe and External Relations Committee Thursday 24 May 2018 Session 5 © Parliamentary copyright. Scottish Parliamentary Corporate Body Information on the Scottish Parliament’s copyright policy can be found on the website - www.parliament.scot or by contacting Public Information on 0131 348 5000 Thursday 24 May 2018 CONTENTS Col. INTERESTS......................................................................................................................................................... 1 SCREEN SECTOR ............................................................................................................................................... 2 ANNUAL REPORT ............................................................................................................................................. 20 CULTURE, TOURISM, EUROPE AND EXTERNAL RELATIONS COMMITTEE 15th Meeting 2018, Session 5 CONVENER *Joan McAlpine (South Scotland) (SNP) DEPUTY CONVENER *Claire Baker (Mid Scotland and Fife) (Lab) COMMITTEE MEMBERS *Mairi Gougeon (Angus North and Mearns) (SNP) *Jamie Greene (West Scotland) (Con) *Ross Greer (West Scotland) (Green) *Richard Lochhead (Moray) (SNP) *Stuart McMillan (Greenock and Inverclyde) (SNP) *Tavish Scott (Shetland Islands) (LD) *Alexander Stewart (Mid Scotland and Fife) (Con) *attended THE FOLLOWING ALSO PARTICIPATED: Andrew Barnes (Olsberg SPI) Dr Michael Franklin (University of London) Dr Inge Sorensen (University of Glasgow) Alex Tosta (British Film Institute) CLERK TO THE COMMITTEE Peter McGrath LOCATION The Robert Burns Room (CR1) 1 24 MAY 2018 2 Scottish Parliament Screen Sector Culture, Tourism, Europe and 09:05 External Relations Committee The Convener: Item 2 is an evidence session on the committee’s inquiry into Scotland’s screen Thursday 24 May 2018 sector, focusing on research, statistics and value. This will be our final evidence session with [The Convener opened the meeting at 09:04] stakeholders before we hear from Creative Scotland and the Cabinet Secretary for Culture, Interests Tourism and External Affairs next Thursday. The committee then intends to publish its report before The Convener (Joan McAlpine): Good the summer recess. morning and welcome to the 15th meeting in 2018 I welcome our witnesses. We have Dr Michael of the Culture, Tourism, Europe and External Franklin of the Institute for Creative and Cultural Relations Committee. I remind members and the Entrepreneurship at Goldsmiths college, the public to turn off their mobile phones. Any University of London; Andrew Barnes, associate members who are using electronic devices to director of Olsberg SPI; Alex Tosta, research access committee papers should please ensure manager in the research and statistics unit at the that they are switched to silent mode. British Film Institute; and Inge Sorensen, lecturer Agenda item 1 is a declaration of interests. in digital economy and culture at the University of Alexander Stewart and Jamie Greene have been Glasgow. appointed to replace Jackson Carlaw and Rachael I will begin by asking Mr Barnes some specific Hamilton respectively as members of the questions, because I know that his consultancy, committee. I warmly welcome Alexander and Olsberg SPI, was involved in preparing some of Jamie to the committee and, on behalf of the the data on which the screen unit collaborative committee, I extend our thanks to Jackson and proposal is based. Is that correct? Rachael for all the work that they did during their time on the committee. Andrew Barnes (Olsberg SPI): Yes. I invite Alexander Stewart and Jamie Greene to The Convener: On the underlying data about declare any interests that are relevant to the the screen sector in Scotland, what is your feeling committee. about what you had to work with in preparing the data for the report? Alexander Stewart (Mid Scotland and Fife) (Con): I have no interests that are relevant to the Andrew Barnes: The overall impression is that committee. I very much look forward to being part there is a lot of data out there, but we are perhaps of the committee. lacking coherent data—a number of data sets that align and can be used in a single fashion. As you Jamie Greene (West Scotland) (Con): I pay will note from the report that we wrote, we had to tribute to my colleagues for the work that they did put in a range of findings for turnover, gross value on the committee and I look forward to being on added and full-time equivalent employee numbers the committee. Given the external relations on the basis that we could not be sure from the element of the committee’s work, I declare that I data that we would not double count. There are a am a member of the cross-party group on building variety of reasons for that. I do not know whether bridges with Israel and the cross-party group on you want me to go into those at this stage or Taiwan. whether you have a follow-up question. The Convener: Thank you. You are both very The Convener: It is quite a technical issue for welcome. many of us, but some of the comments in your report leap out. One of those is about the risk of double counting, which you have addressed in some of your figures. Are you satisfied that the data does not contain any double counting? Andrew Barnes: We can be satisfied that the lower-end estimate does not contain any double counting, but the risk then is of undercounting. From the available data, we could not—at least not without a significant amount of granular research, which was beyond the scope of the project—identify precisely what production 3 24 MAY 2018 4 company did what in Scotland. The use of the underestimate of the impact of that part of the Office for National Statistics-level statistics and screen sector. Even if the beneficial owner of such Companies House filings on which companies are a cinema is not domiciled in Scotland, the wages in which standard industrial classification code got that it pays to Scottish residents and employees us a certain amount of the way. The production still have a downstream impact on the Scottish spend data from Creative Scotland got us a economy. It is a tricky balance to strike. That is certain amount of the way in the other direction. why we disaggregated the information in the way What we cannot tell with any precision is where that we did. We wanted to make it clear which bit those overlap in the middle and the degree of that related to Scotland-domiciled companies with a overlap. Scottish tax base and which bit related only to Scottish employees who would receive some The Convener: Has anyone ever questioned benefit from that employment. the data? The Convener: So Creative Scotland asked Andrew Barnes: Not to my knowledge. you to include that information; you were not The Convener: What implications do the initially inclined to do so. concerns that you have pointed out have for the Andrew Barnes: I cannot remember which of ambitious targets that the screen unit sets for our clients—Creative Scotland, Skills increasing production spend? Development Scotland or Scottish Enterprise— Andrew Barnes: The major challenge that you asked us to do that. I would have to look back face as a nation in increasing production spend is through my notes to find that out. to be able to identify the degree to which you have The Convener: Thank you very much. I hand increased production spend and to accurately over to Claire Baker. measure the impact of that at a future stage. We work across many countries starting at a much Claire Baker (Mid Scotland and Fife) (Lab): It lower base level than that in Scotland in might be helpful if the panel could outline what implementing screen support systems. We always areas of data are to be prioritised. Mr Barnes has tell those countries that including data collection talked only about the economic impact, but we provisions as part of an investment is required in have had submissions on audience participation order to be able to accurately determine the and the softer value of the sector. Where are there impact of that investment. gaps in Scotland’s knowledge? In which areas do we need to increase the data? In Scotland, a certain degree of that exists, but it has to be asked how one puts in place a data Alex Tosta (British Film Institute): I can tell collection methodology that makes it possible for you how the BFI would approach such an issue. the impact of the investments to be evaluated First, we would identify the outcome that we against the targets, and to track that back to the wanted to achieve from any research or data starting position. Unfortunately, the first part of that collection. We would use that to identify the key might not be possible, but the second part is and critical questions that needed to be answered, absolutely critical. and we would follow that up by identifying what data was already available and what data needed The Convener: Are you satisfied that we have a to be accessed. It depends on what your priority is robust process in place in Scotland? for data collection and any additional research that Andrew Barnes: I have not seen any data on needs to be carried out. I do not know whether— the process for the screen unit proposal, so I Claire Baker: I am sorry to interrupt. I do not cannot answer that. know whether the panel has had a chance to look The Convener: Okay. Before we move on, I in detail at the screen unit proposals—a fairly want to ask a specific question about your data. lengthy and quite technical document has been You mentioned that you included cinemas with published. Are the intended outcomes clear non-Scotland domiciled owners—I assume that enough? As you said, that would lead on to what you were referring to multiscreen cinemas. information would need to be collected to reach Therefore, that data went into the overall that stage. Do you agree with the priorities that employment and investment figures for the screen have been identified? Do you think that they are sector in Scotland.